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GOV. WALZ DROPS REELECTION BID
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Gov. Tim Walz announced Monday that he will not seek a third term in office, ending his reelection campaign and shaking up the 2026 gubernatorial race. Walz said he made the decision so he could focus his remaining time as governor on issues including addressing fraud in state programs rather than running a political campaign, saying, “Every minute that I spend defending my own political interest would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who want to prey on our differences. So I’ve decided to step out of this race, and I’ll let others worry about the election.” His announcement follows increased attention in recent months on fraud allegations in Minnesota’s state programs. Walz, a former teacher and member of Congress who later rose to national prominence as the 2024 Democratic vice-presidential nominee, did not announce future plans.
Walz’s decision opens the field for new candidates on the Democratic side. Potential Democratic contenders are now being discussed, including U.S. Sen. Amy Klobuchar, who has said she is considering a run.
Several Republicans have already entered the race, including House Speaker Lisa Demuth, Rep. Kristin Robbins, Kendall Qualls, and MyPillow founder Mike Lindell. 2022 Republican nominee former state senator Scott Jensen is also running.
Responses to Walz’s announcement largely reflected party divisions, with Democratic leaders highlighting his leadership and Republicans criticizing his record, particularly the fraud allegations.
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NEW LAWS
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Several new Minnesota laws take effect with the new year, introducing changes that affect employment, elections, public safety, and natural resources.
Among the most significant is the implementation of the state’s paid family and medical leave program, which allows eligible employees to take up to 12 weeks of paid leave for their own serious health condition or to care for a family member, and up to 12 weeks for the birth or adoption of a child, with a maximum of 20 weeks per year. Benefits will replace a portion of wages based on income, and the program will be funded through a payroll tax.
Additional new laws address election procedures, workplace standards, and insurance premium fraud prevention. Beginning in 2026, online absentee ballot applications will require expanded identification information, and new disclaimers will be required on non-government election mailings. Workplace laws will establish minimum requirements for rest and meal breaks, while changes to workers’ compensation rules aim to reduce fraud in the construction industry.
Other updates include allowing deer hunters additional firearm choices, revised watercraft surcharges and water-use permit fees, and a new legal process that allows courts to issue protective orders to help prevent the financial exploitation of vulnerable adults.
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RURAL HEALTH TRANSFORMATION PROGRAM FUNDING
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Minnesota has been awarded more than $193 million in first-year funding through the federal Rural Health Transformation Program to support health care delivery in rural communities across the state. The funding, provided by the Centers for Medicare & Medicaid Services, will support investments in technology, help improve outcomes for chronic conditions such as heart disease and diabetes, grow the rural health care workforce, and enhance the financial stability of rural providers. State health officials said the investment comes at a critical time for rural Minnesota and reflects extensive collaboration with local stakeholders, health systems, Tribes, and public health partners, with implementation expected to begin in early 2026. The federal Rural Health Transformation Program, included in H.R.1, allocates up to $50 billion nationwide over five years to offer support for rural communities impacted by a $137 billion reduction in federal Medicaid spending. More information can be found on the Minnesota Department of Health’s website.
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TRUMP ADMINISTRATION WITHHOLDING FEDERAL FUNDS
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On Tuesday, the Trump administration said it is withholding federal funding for several social safety net programs, including the Child Care Development Block Grant, Temporary Assistance for Needy Families, and the Social Services Block Grant, citing concerns about fraud. The administration has not released details of the claims yet, but alleges that California, Colorado, Illinois, Minnesota, and New York have improperly directed funds to people in the country illegally. Federal childcare assistance to Minnesota was suspended last month amid probes into suspected fraudulent activity at day care facilities. Minnesota has been facing snowballing reports of fraud in state programs, mostly notably in the Feeding Our Future case.
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IMPORTANT DATES
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Jan. 27, 2026: Special Election for House Districts 47A and 64A
Feb. 17, 2026: Start of Legislative Session
March 20, 2026 – Eid Break
March 27, 2026 – First and Second Committee Deadlines
March 27-April 7, 2026 – Easter/Passover Break
April 17, 2026 – Third Committee Deadline
May 18, 2026: Adjournment of Legislative Session
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EWALD GOVERNMENT RELATIONS TOOLKIT
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We are sharing content along with our updates to help you better understand the legislative process and how to engage effectively. From decoding how the Legislature works to learning how to advocate for your priorities, these resources are designed to support your advocacy every step of the way.
This week’s article provides an overview of how to testify at committee hearings.
Article Link:
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HELPFUL LINKS TO FOLLOW ACTION AT THE STATE CAPITOL
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